The economic growth model predicts that
A)the level of real GDP per capita in poor countries will grow faster than in rich countries.
B)the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries.
C)lower-income industrial countries will forever be unable to catch up to higher-income industrial countries.
D)economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries.
E)high income countries have a legal obligation to help poorer countries grow.

Question

Quizplus · Accepted Answer

The economic growth model predicts that poor countries can achieve a higher rate of economic growth than rich countries due to factors like catch-up growth, technological progress, and increases in human capital. Therefore, the level of real GDP per capita in poor countries will grow faster than in rich countries.

The Economic Growth Model Predicts That